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kkalyan
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Vol. of cylinder =\pi*r^2*h

V is proportional to height and square of radius

v1/v2=1/2

Hence 25%
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volume of cylinder1 should half of cylinder2 by using the formula. thus half of cylinder 1 should be 1/4 of cylinder2.
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What is source of this problem?

[edit] sorry. I see the source listed in the original post.
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Volume of the cylinder with radius 1 and radius 2 is: (22/7)*1*2=2*(22/7)... half filled cylinder then the voulme is (22/7)
Volume of the cylinder with radius 2 and height 1 is: (22/7)*4*1=4*(22/7)...

so the answer is 25%. B

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